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Adjacency Externalities and Forest Fire Prevention

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Author Info
Christian S. L. Crowley
Arun S. Malik
Gregory S. Amacher
Robert G. Haight
Abstract

This paper models landowner behavior on timberland subject to damage by fire. We examine how management decisions by adjacent landowners yield outcomes that diverge from the social optimum, and consider how this divergence depends on landowner preferences and information. We conduct a numerical simulation in which landowners interact through the effects of their fire prevention activities on a common risk of fire. The results reveal significant social inefficiencies related to externalities associated with private fuel treatment decisions. We consider a policy for aligning social and private decisions by requiring landowners to share the government’s cost of fire suppression.

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File URL: http://le.uwpress.org/cgi/reprint/85/1/162
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Publisher Info
Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 85 (2009)
Issue (Month): 1 ()
Pages: 162-185
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Handle: RePEc:uwp:landec:v:85:y:2009:i:1:p:162-185

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Find related papers by JEL classification:
Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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This page was last updated on 2009-11-22.

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